U.S. Ends Duty-Free De Minimis Imports: A Historic Shift for Indian Exporters.
The U.S. government has officially suspended its de minimis exemption for all low-value shipments. This change, effective August 29, 2025, marks a major shift for Indian exporters and global e-commerce supply chains
🧠What Is De Minimis?
The de minimis provision under 19 U.S.C. § 1321(a)(2)(C) allowed imports of goods valued under $800 per shipment to enter the U.S. without duties or taxes. This simplified process was a backbone of e-commerce and D2C (direct-to-consumer) exports to the U.S. But that’s now changed.
đź“ś What Does the New Executive Order Say?
On July 30, 2025, the President of the United States issued an Executive Order titled:
“Suspending Duty-Free De Minimis Treatment for All Countries”
This new order terminates the de minimis exemption for all countries, citing national security, trade enforcement, and public health concerns.
“The entry of covered articles under 19 U.S.C. 1321(a)(2)(C) shall not be permitted… whether such covered articles are imported by mail or otherwise.”
— Executive Order, Sec. 2(a), whitehouse.gov
This means that all low-value commercial shipments—regardless of the country of origin—must now enter the U.S. through formal customs procedures and will be subject to applicable duties, taxes, and fees.
Private Couriers (like DHL, FedEx, UPS): Must now process all shipments through formal U.S. Customs and pay full duties/taxes at the time of entry.
Postal Shipments: Given a 6-month transition period with flat-rate duties ($80–$200 per item), before switching to percentage-based (ad valorem) duties.
🗓️ When Does This Take Effect?
The suspension will come into force 30 days from the date of the order, i.e., on August 29,2025 at 12:01am eastern daylight time.
🌎 Who Is Affected?
âś… All countries are affected.
❌ No exemptions for friendly or developing nations. India is included—the previous advantage Indian exporters enjoyed under de minimis is now gone.
“This suspension shall apply regardless of the country of origin or export.”
— Executive Order, Sec. 2(b), whitehouse.gov
This move marks a turning point in global low-value trade.
This is the time to recalibrate your U.S. export strategy. Those who adapt quickly will continue to grow within the rules of the new global order.
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The Full text of the order can be downloaded from the link below:
https://www.whitehouse.gov/presidential-actions/2025/07/suspending-duty-free-de-minimis-treatment-for-all-countries/
